Intellectual property trading exchange

ABSTRACT

A computerized intellectual property trading exchange is disclosed for facilitating the trading of license contracts relating to intellectual property rights or pools of intellectual property rights. The exchange includes at least one intellectual property license contract relating to intellectual property rights or pools of intellectual property rights and a computer-accessible forum configured to allow a plurality of participants to trade the license contract. The plurality of participants includes at least one seller, which may be the owner, having the license contract and desiring to trade the license contract. The plurality of participants also includes at least one buyer desiring to obtain the license contract. The buyer may be an investor, speculator, market maker, or arbitrageur, who purchases the license contract to achieve appreciation. The buyer also may be a licensee, who purchases the license contract to practice the intellectual property rights.

CROSS-REFERENCE TO RELATED PATENT APPLICATIONS

The present application is a continuation-in-part of U.S. patentapplication Ser. No. 12/355,530, filed Jan. 16, 2009, which is acontinuation-in-part of U.S. patent application Ser. No. 11/405,166,filed Apr. 17, 2006, which claims the benefit of priority to U.S.Provisional Patent Application No. 60/672,324 filed Apr. 18, 2005, allof which are incorporated by reference herein in their entirety.

BACKGROUND OF THE INVENTION

The present invention relates to a trading exchange and, moreparticularly, to an exchange and method for trading intellectualproperty (“IP”) rights, including rights in patents, copyrights,trademarks, trade dress, and trade secrets.

The market for IP rights has never been stronger. In 2005, for example,royalties from the licensing of IP rights accounted for more than $100billion in revenues. Both sellers (or licensors) and buyers (orlicensees) of IP rights have had the potential to make substantial gainsin recent years because of an increased licensing demand.

Currently, there is no centralized marketplace for carrying out thelicensing of IP rights. Rather, an IP owner desiring licensing capitalmust solicit bids from potential licensees and negotiate a licensingagreement. The transaction is similar to the licensing or sale of anyother significant property or asset and may take weeks, months, or evenyears before any deal closes.

A drawback of the current IP licensing market is that IP owners mustactively pursue parties for licensing. This process may be both timeconsuming and expensive, because IP owners usually are not fully awareof the entire market outside of their competitors and often mustdedicate time and money to research the marketplace. Often, IP ownersengage in expensive licensing campaigns to determine which parties mightbenefit from an IP license and then solicit those parties for interest.It is not unusual for licensing campaigns to extend a period of yearsfor identifying and targeting all potential licensees.

Another drawback of the current IP licensing market is determining avalue for the IP. After a potential licensee is identified, the IP ownerand potential licensee must negotiate a royalty or fixed price for theIP rights. While valuation may be fairly settled in establishedindustries, arriving at a reasonable value for IP related to new oremerging technologies may not be easily accomplished. In any technology,the valuation process may require weeks or even months of negotiatingbefore any licensing agreement is signed. Some valuation methods haveexpedited this process, such as the methods disclosed by U.S. PatentApplication Publication No. 2003/0200104 to Heming et al. (“the HemingApplication”). Yet, the Heming Application does not address valuationfor new or emerging technologies or the problems described above withdetermining the licensing market.

In the current IP licensing market, litigation is the only means ofrecourse an IP owner may have against infringers or parties refusing toaccept or pay for licenses. Because of this, the current IP licensingmarket often is reactive by focusing primarily on parties that alreadyare infringing certain IP rights. For instance, an IP owner may discoverthat a competitor is making or using a certain patented device. Shouldlicensing negotiations not prove successful (or not even be an option),the IP owner may have to prevail in a patent infringement lawsuit beforethe IP owner is rightfully compensated for theinfringer's use of thepatented device. Patent infringement lawsuits often are extremelyexpensive, sometimes costing multiple millions of dollars, andresolution is seldom quick. In other words, an IP owner may have tospend millions of dollars and wait several years before prevailing in apatent infringement action and finally realizing any financial gain fromthe IP.

A couple alternatives to the traditional IP licensing market exist, suchas patent pools and patent license exchange companies. Patent pools, forinstance, collect IP that typically is related to a standard and licenseit non-exclusively under common terms. Patent license exchangecompanies, on the other hand, raise money (sometimes as much as hundredsof millions of dollars) to purchase patents and license or enforce themagainst infringers. While patent pools and patent license exchangecompanies tend to expedite the traditional IP licensing process, theyoften do so at the expense of the value of the IP. For example, a patentpool may not receive the maximum value for each patent among the pool.In order to maintain marketability for the entire pool, certain patentswithin the pool may be considerably discounted or licensed for far lessthan the market may provide if the discounted patents were licensedindividually.

Convenient marketplaces exist for buying and selling (or trading) othertypes of property rights and assets, such as stocks and othersecurities, commodities, futures, and even environmental emissionspermits. For example, various exchanges, such as the New York StockExchange (“NYSE”), actively trade stocks and securities. Otherexchanges, such as the Chicago Mercantile Exchange (“CME”) activelytrade commodities and futures. And while most trading activity today isperformed electronically, some exchanges such as the NationalAssociation of Securities Dealers Automated Quotations (“NASDAQ”) areentirely traded electronically without utilizing a centralized tradingfloor. These trading exchanges allow for assets such as stocks andsecurities to be quickly and easily traded, both upon the initial publicoffering (“IPO”) and during subsequent day-to-day transactions. As aresult, owners of such assets have an immediate market for trading anddo not have to spend months seeking out buyers and negotiating prices.

Presently, there is no convenient, centralized marketplace for tradingIP rights. Accordingly, there is a need for an IP licensing marketplaceand a method of trading IP rights in an expeditious manner thatmaximizes the value of the IP.

SUMMARY OF THE INVENTION

In accordance with one aspect of the present invention, a computerizedintellectual property trading exchange is disclosed for facilitating thetrading of intellectual property rights. The computerized exchangeincludes at least one unitized intellectual property license contractrelating to intellectual property rights or a pool of intellectualproperty rights, and a computer-accessible forum configured to allow aplurality of participants to trade the unitized license contract. Theplurality of participants includes at least one seller having theunitized license contract and desiring to trade the unitized licensecontract. The plurality of participants also includes at least one buyerdesiring to obtain the unitized license contract.

In accordance with another aspect of the present invention, a method isdisclosed for trading at least one unitized license contract relating tointellectual property rights or a pool of intellectual property rightsby a seller of the unitized license contract to at least one buyerthrough a computerized intellectual property exchange. The methodincludes the steps of: storing in a computerized storage deviceinformation describing the seller listing the unitized license contracton the computerized intellectual property exchange, storing in acomputerized storage device information describing the buyer purchasingthe unitized license contract through the computerized intellectualproperty exchange, and processing in a microprocessor the clearing ofthe purchase by the buyer of the unitized license contract.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 shows the steps of an initial offering of unitized licensecontracts on an embodiment of a computerized intellectual propertytrading exchange of the present invention;

FIG. 2 shows typical day-to-day transactions on an embodiment of acomputerized intellectual property trading exchange of the presentinvention; and

FIG. 3 is a diagram showing certain steps during the lifecycle ofanother embodiment of an unitized license contract of the presentinvention.

DETAILED DESCRIPTION OF THE INVENTION

The current market for intellectual property (“IP”) and sophisticationof current exchanges provide an opportunity to develop efficiencies inthe IP marketplace and maximize IP valuation through an IP tradingexchange. An IP trading exchange may be used for licensing or sellingall types of IP, including patents, copyrights, trademarks, trade dress,and trade secrets. Moreover, in one embodiment of the present invention,the IP may include issued patents, registered copyrights, registeredtrademarks, or any other granted or registered IP. In another embodimentof the present invention, the IP may include pending patentapplications, pending trademark applications, or any other pending IPapplication or registration. In yet another embodiment of the presentinvention, the IP may include a pool or plurality of issued patents orpending patent applications, registered copyrights, registeredtrademarks or pending trademark applications, or any other pending,granted or registered IP.

An IP trading exchange offers a forum in which IP owners, licensees, orfinancial investors or speculators may buy or sell IP rights throughlicenses and/or related futures contracts. For example, in accordancewith one embodiment of the present invention, an IP trading exchange maybe used to buy or sell IP rights through licenses, which may then beused to practice the invention or legitimize current operations that maybe infringing. In accordance with another embodiment of the presentinvention, an IP trading exchange may be used to buy or sell speculativeIP rights through futures contracts, the goal of which is to earnappreciation by re-selling for a higher price at some time in thefuture. In accordance with still another embodiment of the presentinvention, an IP trading exchange may be used to buy or sell a pool ofIP rights, said IP pooled by said seller and licensed to said buyer.

Key Elements of a Computerized IP Trading Exchange

Following are descriptions of key elements of a computerized IP tradingexchange in accordance with one or more embodiments of the presentinvention. A computerized IP trading exchange may have some or all ofthese elements, as well as any additional elements necessary for thesetup, execution, and daily operation of a computerized IP tradingexchange.

Intellectual Property. Intellectual property (“IP”) includes patents,copyrights, trademarks, trade dress, trade secrets, and any otherintangible ideas or expressions. IP is a form, of legal entitlement,which allows its owner or holder to control the use, manufacture, orsale of the IP. For example, a patent allows the owner or holder toexclude others from practicing an invention. Manufacturers and otherpotential holders gain the right to practice an excluded invention bylicensing or purchasing the rights from a patent owner. In an IP tradingexchange, certain IP is accepted for listing on the exchange, asdescribed below.

IP Owner. The IP owner (licensor) provides licensing and sub-licensingrights to licensees in exchange for royalties or other compensation asstipulated by the license agreement. In accordance with one embodimentof the present invention, an IP owner licenses the IP to an investmentbank in exchange for a cash payment. In accordance with anotherembodiment of the present invention, an IP owner performs the listingand underwriting of IP license contracts itself and without theassistance of an IP investment bank. The IP owner may include multipleindividuals and/or entities. For instance, the IP owner may include allof the owners of various intellectual property rights relating to aspecific product or industry.

Investment Bank. In accordance with one or more embodiments of thepresent invention, investment banks receive the IP rights from the IPowner and package them for listing or inclusion on the IP tradingexchange. Specifically, an investment bank rates, insures, and valuesthe IP, as described below. Additionally, the investment bank mayperform other functions such as underwriting the licensing transaction,or the IP investment bank may work with a separate underwriter or anunderwriting syndicate to carry out the underwriting processes. Further,the investment bank may certify that IP license contracts comply withthe regulations of trading and the requirements of listing on the IPtrading exchange. The investment bank may then list the IP on the IPtrading exchange and sub-license the IP to perspective buyers. Inanother embodiment of the present invention, the IP investment bank mayhave the right to enforce the IP should an infringer not purchase alicense from the IP trading exchange. The IP owner may choose to jointhe IP investment bank in any enforcement proceedings if desired or ifnecessary.

Underwriter. The IP investment bank and/or IP trading exchange mayretain a separate underwriter or an underwriting syndicate to carry outthe due diligence and underwriting processes. Alternatively, theunderwriting process may be carried out by one or more of the IP owner,IP investment bank, and/or IP trading exchange. The underwriter reviewsinformation relating to the intellectual property submitted by the IPowner and evaluates the deal, performs due diligence, and may recruit asyndicate. The underwriter may negotiate an underwriting agreement withthe IP investment bank and/or IP trading exchange, and based on theagreement, the underwriter may purchase a certain volume of theintellectual property licensing contracts as part of the initial sale oroffering.

Computerized IP Trading Exchange. The computerized IP trading exchangemonitors disclosures and may guarantee and/or clear transactions similarto today's commodities and futures exchanges, in addition to otherfunctions performed by today's exchanges. The IP trading exchange maymonitor and/or enforce regulations relating to trading, includingregulations created by the exchange as well as governmental regulations.Further, the IP trading exchange may monitor and/or enforce requirementsfor listing IP license contracts on the exchange. After the initialoffering, IF pricing is achieved by continuous or day-to-day trading, asdescribed below. The IP trading exchange keeps track of pricinginformation and provides pricing information on a realtime basis.Pricing information may be provided in any print (e.g., newspaper,facsimile) or electronic (e.g., ticker, RSS feed, webstream, e-mail,interne webpage) medium. Additionally, the IP trading exchange mayprovide pricing information in the form of industrial averages orindices, which may be based on average pricing information for licensecontracts relating to various technologies, industries, and/orcompanies.

The IP trading exchange is computerized and IP owners, IP investmentbanks, IP investors, and licensees can access the IP trading exchangethrough the internet by accessing a website of the IP trading exchange,through other computerized systems or networks such as NASDAQ and/or theNASDAQ portal, and/or through other online connections or portals. TheIP trading exchange may have an independent computerized platform withits own servers and databases. In another embodiment, the IP tradingexchange is hosted on third-party networks or computerized systems. Asone example, the IP trading exchange may be implemented on a hostednetwork with information stored on one or more databases that may bepart of the hosted network or may be accessible to but separate from thehosted network.

The IP trading exchange maintains electronic information relating to theunitized license contracts that are listed on the exchange. The IPtrading exchange also maintains electronic information relating to theIP owners, IP investment banks, IP investors, and licensees. Theinformation is stored in one or more databases maintained by or at thedirection of the IP trading exchange.

IP Investors. IP investors (which may include speculators, marketmakers, and arbitrageurs) add liquidity to the market. IP investorspurchase IP licensing and/or futures contracts with the goal ofre-selling the contracts at higher prices sometime in the future. Insome embodiments of the present invention, the IP investors may act onbehalf of licensors or licensees.

Licensees. Licensees are the ultimate buyers of the IP rights andconsumers of the IP trading exchange. Licensees purchase IP licensing inorder to practice the invention. In some cases, licensees purchase IPlicensing in order to legitimize current operations that may beinfringing. In some embodiments of the present invention, the licenseealso may serve as the IP investor.

Initial Offering of IP Rights

For purposes of illustration only, an IP trading exchange may be thoughtof as a hybrid of today's stock and commodities exchanges. For example,the initial offering of rights to a particular IP may be modeled after astock initial public offering (“IPO”) on a traditional stock exchange.

In the first step of an IP initial offering, the IP owner identifies IPthat it desires to license. Alternatively, the IP trading exchangeand/or an IP investment bank may approach the IP owner to solicitinterest in listing the intellectual property rights on the exchange.The IP owner may execute a mutual non-disclosure agreement (mNDA) withthe IP trading exchange and/or IP investment bank prior to making asubmission. An mNDA allows the IP trading exchange and/or IP investmentbank to share confidential information relating to the intellectualproperty with one or more underwriters that assist with the listing andunderwriting process.

The IP owner then submits a schedule of intellectual property to belisted on the IP trading exchange. The IP owner also may submit one ormore of the following: a checklist covering key representations andterms from any seller agreement or unitized license contract (including,for instance, field of use, geographical restrictions, whether researchwas federally funded, among others); any due diligence checklist,including validity opinions and/or analyses such as prior art searches,infringement analyses such as claim charts, encumbrances, and priorlicensing experience; descriptions of the technology to the licensed,including expected commercial embodiments in which the technology couldbe used, and market analyses; any financial information relating toanticipated deals and/or licensing revenues; and any plans for futureproduction of the licensed technology. The IP owner may submit IP to belisted individually on the IP trading exchange as well as IP to belisted together as a pool.

The IP owner then solicits bids from the IP trading exchange and/or IPinvestment banks to perform the listing and underwriting process.Alternatively, the IP owner may perform the listing and underwritingprocess itself.

If the IP owner utilizes an IP investment bank, then IP investment banksbid on the listing and underwriting process, and the IP owner selectsone of the investment banks, typically the lowest bidder, to carry theprocess forward. Investment banks typically work out a fee structure forthe listing and underwriting process, which may be fixed fees, successor percentage fees based on the success of the IP initial offering, or acombination of both fixed and success fees.

Next, IP trading exchange and/or the selected IP investment bank maybegin the due diligence phase of the listing process. As describedbelow, the due diligence phase includes: packaging the IP for listing;performing legal analysis of the strength and ownership of the IP,including validity and noninfringement analyses; performing marketanalysis of the products and/or parties which may infringe the IP andrequire or benefit from licensees to the IP, including a determinationof the likely market size and market segments; performing valuationanalyses, including a determination of the likely range of royalties;and marketing the IP. The due diligence phase may be conducted by the IPowner and/or the IP investment bank. Alternatively, the due diligencephase may be contracted out to lawyers, economists, marketing firms, orother specialists and third parties.

By packaging the IP, the IP owner (or, for example, marketing firms)determine which of the relevant IP should be included in the listing.For instance, an IP owner may only have one patent, and only that patentwould be listed. But in instances where the IP owner has numerous IP ormultiple related IP, determining which IP should be included in a singlelisting may require careful consideration. For example, IP may begrouped by product or product group, such as all of the patents andtrademarks related to a particular car or line of cars. As anotherexample, IP may be grouped by patent families, such as a parent patentand all patents relating or based on the parent.

In accordance with one embodiment of the present invention, the IP maybe pooled such that the unitized license contract that is listedprovides for the licensing of a plurality of IP. IP may be placed in apool according to one or more requirements set by the IP tradingexchange and/or the selected IP investment bank. For instance,consideration of whether IP should be included in a particular pool mayturn on a consideration of quality and/or valuation metrics relating tothe IP and may be permitted based solely upon the IP meeting establishedthreshold values for such metrics. Such metrics may include theRelevance and/or IPQ Scores defined by Ocean Tomo PatentRatings(www.patentratings.com) as generally described in U.S. Pat. Nos.6,555,992 and 7,657,476 and United States Published Patent Appl. No.2007-0073748 A1, each of which is incorporated herein by reference.Inclusion of certain IP in a particular pool also may turn on the IPowner, who may petition the IP trading exchange and/or the selected IPinvestment bank to place certain IP in a particular pool.

The legal analysis of the IP is to determine the strength, or at leastan opinion of the strength, of the IP. For instance, with patents, theprior art may be assessed and opinions may be made concerning anypossible invalidity issues based on the prior art. Additionally, claimcharts may be made and the claims may be construed to determine thepatent's scope of coverage. It also may be important to ensure thatcertain formalities have been followed, such as proper recordation ofany assignments, perfection of claims of priority, and/or payment of anyannuities or maintenance fees. With, for example, trade secrets, theextent to which the trade secrets have been kept confidential may beassessed, including whether non-disclosure agreements have been used andthe extent to which the trade secret has been disclosed, taught, ordemonstrated. As another example, with trademarks, a trademark searchand/or consumer surveys may be conducted to determine the brandrecognition or strength of the mark. Also, it may be important todetermine whether formalities have been followed, such as timely filingof statements of use and/or payment of any annuities or maintenancefees.

Valuation of the IF may involve the consideration of numerous factors,such as the strength of the IP, the ability to use or the availabilityof substitute or competing technologies, the market need for thetechnology, and/or the market size and number of parties that may bebenefit from or require licensing. Also, valuation may depend on thequantity of IP packaged together in the listing. Valuation may requirethe consideration of economists and lawyers. Additionally, third partyratings or assessments of IP may be helpful in determining the value ofthe IP.

Upon completion of the due diligence phase, the IP trading exchangeand/or IP investment bank determines whether or not the IP should belisted on the IP trading exchange based on the due diligence review.This determination is based on particular underwriting criteria and mayfurther include the determination of an underwriter. As with all risks,some underwriters and investment banks are more conservative than othersand may have different standards in evaluating the above factors of thedue diligence review. Should the IP trading exchange and/or IPinvestment bank accept the IP for listing on the IP trading exchange,the IP trading exchange and/or IP investment bank assigns a listingprice and provides an estimate of the cash from listing the IP to the IPowner.

At this point, the IP trading exchange and/or IP investment bank may usean underwriter to accept and underwrite the listing and the licensecontracts. For instance, the underwriter, as lead with an underwritingsyndicate or acting alone, may decide to purchase a certain amount oflicense contracts at a predetermined price as part of an initial sale ofthe intellectual property rights. The underwriter may execute an mNDAwith the IP trading exchange and/or IP investment bank and, in exchange,the IP trading exchange and/or IP investment bank provides theinformation submitted by the IP owner and any internal analyses orevaluations. The underwriter may perform its own due diligence inanalyzing the deal or it may recruit a syndicate. The underwriter alsomay execute an underwriting agreement with the IP trading exchangeand/or IP investment bank.

If the listing price is satisfactory, the IP owner may grant the IPinvestment bank an exclusive license for the intellectual property withthe right to sub-license on a limited (e.g., quantity) non-exclusivebasis. In accordance with one embodiment of the present invention, theIP owner may retain a non-exclusive right to practice the IP at no costor at a reduced cost. In accordance with another embodiment of thepresent invention, the IP investment bank may obtain an exclusivelicense in order to have the ability to enforce the IP againstinfringers. The IP owner may choose to join any enforcement proceedingsif desired or if necessary.

The IP trading exchange may issue an offering-memorandum pursuant to andconsistent with Rule 144A of the Securities Act of 1933 addressing oneor more of the following: a schedule of the intellectual property rightsto be listed and the products with which the intellectual propertyrights may be used pursuant to the license contract; a description ofthe technology or intellectual property rights to be listed; adescription of the market for the listed technology or intellectualproperty rights; a comparison with other known competing technologies;any pre-existing encumbrances; IP owners' projections on production, ifapplicable; if an industry-accepted standard exists, any comparisonand/or likelihood of adoption as a standard; any validity analyses, riskfactors, and any fees; and IP trading exchange rules and disclosures,including underwriting disclosures, IP trading exchange's right toenforce and settlement policies, buyer obligations to report licensingusage, IP trading exchange's right to audit, and any restrictions orpolicies with respect to resale, sublicensing, and enforcement.

Upon receiving the exclusive license, the IP investment bank may preparean IP prospectus and/or other marketing materials to attract potentiallicensees, investors, and/or speculators. These materials likely includeinformation obtained from the due diligence review. For instance, thematerials may include: a listing of the IP included in the non-exclusivelicense; legal analysis of the strength of the IP; the terms of thenon-exclusive license contract including the number of units that can beproduced and the duration of the contract; the nature of the enforcementactions that may be taken against infringers; portions of the valuationanalysis; when and under what terms additional licenses may be madeavailable (e.g., if license contracts trade for more than a certainvalue for more than a specific number of continuous trading days, a newrelease of licenses will be made available).

Next, the IP owner and/or IP investment bank prepares for the initialoffering of the IP rights. As with stock IPOs, the IP owner and/or IPinvestment bank seeks to list certain IP license contracts on the IPtrading exchange. The initial offering may be based on a certainquantity of IP license contracts, a certain duration for the IP licensecontracts, or a combination of both quantity and duration.

The IP trading exchange may schedule the date on which the licensecontracts will first trade and the initial offering price. On the dateof the initial trade, the IP trading exchange and/or a clearinghouse,such as the NASDAQ portal or the Depository Trust Clearing Corporation(“DTCC”), will have the number of electronic certificates authorized forthe first issue on hand. The LP trading exchange and/or theclearinghouse will disseminate live or realtime license contract tradinginformation, such as the bid or offer and details relating to the lasttrade. The underwriter will sell through its volume commitment first,and then the IP trading exchange pays a flat fee for each licensecontract that issues.

Then, the IP trading exchange allows the IP license contracts to belisted on the exchange. The IP license contracts may be listed bymembers or member firms of the exchange, which may include IP investmentbanks or other investors. Alternatively, the IP license contracts may belisted by the IP owner.

The IP trading exchange carries out duties which may be similar tocurrent stock exchanges. For example, the IP trading exchange monitorsdisclosures, guarantees transactions, and clears transactions. The IPtrading exchange may monitor and/or enforce any trading regulations,including regulations enacted by the exchange and/or any governmentalregulations. Alternatively, this function in whole or in part also maybe carried out by IP investment banks.

Additionally, the IP trading exchange may monitor and/or enforce anyrequirements of listing on the exchange. Alternatively, monitoringand/or enforcing of any listing requirements may be carried out, inwhole or in part, by IF investment banks. Listing requirements, whichmay be created by the exchange, may include considerations such aswhether the intellectual property rights have been litigated and, if so,the extent to which they have been litigated; whether competent priorart searches have been conducted; and/or whether any opinions of counselhave been made. Based on listing requirements such as the above, the IPlicense contracts may be listed separately on the exchange underdifferent types or classes. For example, IP license contracts relatingto intellectual property that has been litigated may be classifiedseparately from those contracts relating to intellectual property thathas not been litigated. IP contracts which relate to intellectualproperty that has been litigated may be further classified depending onthe extent of litigation. For example, IP contracts relating tointellectual property that has been litigated in district courts andfound valid and enforceable may be placed in one class, while IPcontracts relating to intellectual property that has been litigated inthe Federal Circuit or the Supreme Court may be placed in differentclasses. Additionally, IP license contracts relating to intellectualproperty where opinions of counsel have been made may be placed in aclass separate from those IP license contracts relating to intellectualproperty where opinions of counsel have not been made. One or more ofthe above requirements and/or considerations may be used in listing theIP license contracts on the exchange.

Investors, licensees, and licensors may purchase the IP licensecontracts from the IP trading exchange. Investors purchase IP licensecontracts with the goal of seeking appreciation or re-selling at ahigher price at some time in the future. In this sense, the IP licensecontracts are similar to a futures contract. Licensees, on the otherhand, purchase the contracts in order to practice the IP or legitimizeinfringing uses of the IP. In this sense, licensees take delivery of theactual license. With respect to IP license contracts relating to poolsof IP, licensees take delivery of licenses to each of the IP containedby the pool. Unused IP license contracts may be re-listed at a latertime on the IP trading exchange upon an audit of current operationsindicating that the IP is no longer being practiced or is within levelsconsidered acceptable by the license. Further, if future operationsrequire a license and the licensee has sold the license throughre-listing, then the licensee will need to acquire a new license fromthe IP trading exchange in order to resume operations.

In accordance with one embodiment of the present invention, pooled IPthat is listed on the IP trading exchange may provide the IP owner withroyalties relating to all of the IP contained by the pool. For instance,royalties may be derived based on the number of IP in the pool. Asanother example, royalties may be derived based on a weighting formula.The weighting formula may assess a royalty for each IP wherein the valueof the royalty is based on one or more requirements, such as quality orvalue metrics. Such metrics may include the Relevance and/or IPQ Scoresdefined by Ocean Tomo PatentRatings (www.patentratings.com) as generallydescribed in U.S. Pat. Nos. 6,555,992 and 7,657,476 and United StatesPublished Patent Appl. No. 2007-0073748 A1, each of which isincorporated herein by reference.

In accordance with another embodiment of the present invention, thelisting IP investment bank may initiate patent infringement actions andother enforcement proceedings against infringers who refuse to purchaselicenses through the IP trading exchange. The IP owner may choose tojoin any enforcement proceedings if desired or if necessary. Excessproceeds from infringement actions may be used by the investment bank topurchase IP license contracts from the IP trading exchange, therebyincreasing the price of the contracts and raising the value of the IP.

Day-to-Day Transactions of IP Rights

For purposes of illustration only, an IP trading exchange may be thoughtof as a hybrid of today's stock and commodities exchanges. For example,day-to-day transactions of rights to a certain listed IP may be modeledafter a traditional commodities exchange where contracts are traded on adaily basis. As part of the first step of a typical day-to-daytransaction of IP rights, the owner or seller of at least one IP licensecontract lists the contract and an asking or specified price on the IPtrading exchange. The IP license contracts may relate to a specific orindividual IP or may relate to a pool containing a plurality of IP. Insituations where multiple contracts are owned, the IP license holder maylist multiple if not all of the license contracts on the exchange. TheIP license holder may perform the listing itself or it may retain anexchange member to perform the listing. The IP license holder may be aninvestor or speculator who is re-selling the license contract for ahigher price. Alternatively, the IP license holder may be a licensee whono longer needs the license, as described below, or is selling excesslicense contracts. The IP trading exchange and/or third-party networkssuch as NASDAQ portal host the secondary market, which may be brokeredor non-brokered.

Through the IP trading exchange, buyers determine whether or not demandis sufficient to buy the license contract for the IP license holder'sspecified price as listed on the exchange. If buyers are unwilling topay the specified price, then the seller retains the license contractuntil such time when the price becomes more attractive in the market.Alternatively, the seller may lower the asking price to attract a buyer,which may be necessary to sell the license contract if expiration isimminent. With respect to pools of IP, the market prices may reflect orbe indicative of the value of the underlying IP considered separately.The inclusion of additional IP in a particular pool may impact marketprices based on the value of the additional IP and/or the sum totalvalue of the IP in the pool.

If buyers are willing to pay the specified price, then the sale movesforward towards closing. Typically, an exchange member purchases thelicense contract on behalf of the buyer at the specified price, and theIP trading exchange clears the transaction. In most any situation, theIP trading exchange monitors any disclosures and guarantees and clearsthe transaction.

With investors, the buyer may hold the license contract until such timethat the price becomes attractive for the buyer to sell the contract. Ifexpiration is imminent, the buyer may be forced to sell the licensecontract, perhaps even at a discounted price.

In the situation of a licensee or licensor, the buyer may hold thecontract beyond expiry and take delivery of the actual license. Forinstance, a licensee may require the actual license in order to practicethe IP or legitimize current operations that may be infringing.Typically, the actual license is delivered by the specialist holding thelicense.

Where delivery of the actual license has occurred, the holder of thelicense may only re-list the license upon an audit of current operationsindicating that the IP is no longer being practiced or is within levelsconsidered acceptable by the license. Further, if future operationsrequire a license and the licensee has sold the license throughre-listing, then the licensee will need to acquire a new license fromthe IP trading exchange in order to resume operations.

The IP trading exchange retains the right to audit any IP owner at itsdiscretion using an internal or third-party auditing team. For instance,one auditing scenario may require that all buyers that hold licensecontracts as of the end of a particular quarter must report theirlicense contract usage to the IP trading exchange within a specifiedamount of time following the quarter-end. The IP trading exchange thenreports to the market, through its website or other reporting mediums,the individual usage numbers per buyer (e.g., Buyer A holds 1,200,000license contracts and has consumed 800,000 as of the most recentquarter-end) and may report the identities of the specific buyers. TheIP trading exchange may choose to report usage information only if abuyer is holding more than a specified percentage of the original issueamount of the license contracts. The IP trading exchange also may reportother details relating to the status of listed license contracts, suchas any supplemental information or material disclosures regarding thetechnology or intellectual property rights. For instance, the IP tradingexchange may announce the filing of a suit against an alleged infringerupon filing of the complaint, as well as the number of license contractsthe defendant is alleged to need to remove liability for alleged pastinfringement.

While contracts are listed on the IP trading exchange, the IP investmentbank that initially listed the transaction or its agents may encouragepotential licensees to purchase licenses from the exchange. Conducting alicensing and/or marketing campaign often fosters interest in thelicenses, which may generate activity in the market and ultimately raisethe exchange prices and IP value.

Depending on trading activity, it may be necessary to release additionallicense contracts. For instance, if license contracts trade for morethan a certain value for more than a specific number of continuoustrading days, a new release of licenses may be warranted. The initialoffering stipulates the conditions under which additional licenses maybe released. As with the initial offering, the release of additionallicenses may be based on a certain quantity of IP license contracts, acertain duration for the IP license contracts, or a combination of bothquantity and duration. For example, the initial offering may stipulatethat a release often new licenses is warranted when trading of theexisting licenses exceeds $1,000,000 for more than a thirty-day tradingperiod. The second offering of new licenses may stipulate the conditionsunder which yet another release of new licenses may be warranted.Additional licenses are released in a manner similar to the initialrelease described above. The new licenses are then bought and sold asdescribed above with respect to day-to-day transactions.

In accordance with one embodiment of the present invention, the IP ownerof a pool of IP may wish to include additional IP in the pool. The IPtrading exchange and/or the selected IP investment bank may permit theinclusion of additional IP according to one or more requirements. Forinstance, consideration of whether IP should be included in a particularpool may turn on a consideration of quality and/or valuation metricsrelating to the IP and may be permitted based solely upon the IP meetingestablished threshold values for such metrics. Such metrics may includethe Relevance and/or IPQ Scores defined by Ocean Tomo PatentRatings(www.patentratings.com) as generally described in U.S. Pat. Nos.6,555,992 and 7,657,476 and United States Published Patent Appl. No.2007-0073748 A1, each of which is incorporated herein by reference.Inclusion of certain IP in a particular pool also may turn on the IPowner, who may petition the IP trading exchange and/or the selected IPinvestment bank to place certain IP in a particular pool.

In accordance with another embodiment of the present invention, the IPtrading exchange, IP investment bank, or their agents may take legalaction to require a potential licensee to purchase a license, such aswhere potential licensee may be infringing the IP and refuses topurchase a license. The IP trading exchange may employ an enforcementcommittee for investigating allegedly infringing entities and conductingpre-litigation assessments and investigations. The IP owner may chooseto join any enforcement proceedings if desired or if necessary. Excessfunds generated from any resolution of legal action may be used topurchase licenses from the IP trading exchange, which mitigates the highcost of litigation and, at the same time, increases the price of thecontracts and value of the IP.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT

The present invention will now be described more fully with reference tothe Figures in which the preferred embodiment of the present inventionis shown. The subject matter of this disclosure may, however, beembodied in many different forms and should not be construed as beinglimited to the embodiment set forth herein.

Referring now to the drawings, wherein like reference numerals designateidentical or corresponding parts throughout the several views, FIG. 1shows the steps of an initial offering of licenses on an IP tradingexchange according to one embodiment of the present invention.

Initially, the IP Owner 10 identifies IP that it desires to license. TheIP may include patents, copyrights, trademarks, trade dress, and tradesecrets. Moreover, the IP may include issued patents, registeredcopyrights, registered trademarks, or any other granted or registeredIP. Additionally, the IP may include pending patent applications,pending trademark applications, or any other pending IP application orregistration. The IP license contracts may relate to a specific orindividual IP or may relate to a pool containing a plurality of IP. TheIP Owner 10 then solicits bids from IP Investment Banks 12 to performthe listing and underwriting process.

The IP Investment Banks 12 then bid on the listing and underwritingprocess, and the W Owner 10 selects one of the banks, typically thelowest bidder, to carry the process forward. Investment Banks 12typically work out a fee structure for the listing and underwritingprocess, which may be fixed fees, success or percentage fees based onthe success of the IP initial offering, or a combination of both fixedand success fees.

The selected IP Investment Bank 12 begins the due diligence phase of thelisting process. The due diligence phase may include: packaging the IPfor listing; performing legal analysis of the strength and ownership ofthe IP; performing market analysis of the products and/or parties whichmay infringe the IP and require or benefit from licensees to the IP;performing valuation analyses; and marketing the IP. The due diligencephase may be conducted by the IP Owner 10 or contracted out to lawyers,economists, marketing firms, or other specialists and third parties.

Upon completion of the due diligence phase, the IP Investment Bank 12determines whether or not the IP should be listed on the IP TradingExchange 14 based on the due diligence review. This determination isbased on the IP Investment Bank's own underwriting criteria. AS with allrisks, some banks are more conservative than others and may havedifferent standards in evaluating the above factors of the due diligencereview. Should the IP Investment Bank 12 accept the IP for listing onthe IP Trading Exchange 14, the IP Investment Bank 12 assigns a listingprice and provides an estimate of the cash from listing the IP to the IPOwner 10.

If the listing price is satisfactory, the IP Owner 10 may grant the IPInvestment Bank 12 an exclusive license for the intellectual propertywith the right to sub-license on a limited (e.g., quantity)non-exclusive basis. Additionally, the IP Owner 10 may retain anon-exclusive right to practice the IP at no cost or at a reduced cost.Further, the IP Investment Bank 12 may obtain an exclusive license inorder to have the ability to enforce the IP against infringers.

Upon receiving the exclusive license, the IP Investment Bank 12 mayprepare an IP prospectus and/or other marketing materials to attractpotential licensees, investors, and/or speculators. These materialslikely include information obtained from the due diligence review. Forinstance, the materials may include: a listing of the IP included in thenon-exclusive license; legal analysis of the strength of the IP; theterms of the non-exclusive license contract including the number ofunits that can be produced and the duration of the contract; the natureof the enforcement actions that may be taken against infringers;portions of the valuation analysis; when and under what terms additionallicenses may be made available (e.g., if license contracts trade formore than a certain value for more than a specific number of continuoustrading days, a new release of licenses will be made available).

Next, the IP Owner 10 and/or the Investment Bank 12 prepares for theinitial offering of the IP rights. As with stock IPOs, the InvestmentBank 12 seeks to list certain IP license contracts on the IP TradingExchange 14. The listing of IP license contracts may be based onquantity, duration, or a combination of both.

Then, the IP Trading Exchange 14 allows member firms to list the IPlicense contracts on the exchange. The IP Trading Exchange 14 carriesout duties similar to current stock exchanges. For example, the IPTrading Exchange 14 monitors disclosures, guarantees transactions, andclears transactions.

Speculators and Investors 16 and/or Licensees 18 may purchase the IPlicense contracts from the IP Trading Exchange 14. Speculators andInvestors 16 purchase IP license contracts with the goal of seekingappreciation or re-selling at a higher price at some time in the future.In this sense, the IP license contracts are similar to a futurescontract. Licensees 18, on the other hand, purchase the contracts inorder to practice the IP or legitimize infringing uses of the IP. Inthis sense, Licensees 18 take delivery of the actual license. Unused IPlicense contracts may be re-listed at a later time on the IP TradingExchange 14 upon an audit of current operations indicating that the IPis no longer being practiced or is within levels considered acceptableby the license. Further, if future operations require a license and theLicensee 18 has sold the license through re-listing, then the Licensee18 will need to acquire a new license from the IP Trading Exchange 14 inorder to resume operations.

The IP Owner 10 of a pool of IP may wish to include additional IP in thepool. The IP Trading Exchange 14 and/or the IP Investment Bank 12 maypermit the inclusion of additional IP according to one or morerequirements. For instance, consideration of whether IP should beincluded in a particular pool may turn on a consideration of qualityand/or valuation metrics relating to the IP and may be permitted basedsolely upon the IP meeting established threshold values for suchmetrics. Such metrics may include the Relevance and/or IPQ Scoresdefined by Ocean Tomo PatentRatings (www.patentratings.com) as generallydescribed in U.S. Pat. Nos. 6,555,992 and 7,657,476 and United StatesPublished Patent Appl. No. 2007-0073748 A1, each of which isincorporated herein by reference. Inclusion of certain IP in aparticular pool also may turn on the IP Owner 10, who may petition theIP Trading Exchange 14 and/or the IP Investment Bank 12 to place certainIP in a particular pool.

The listing IP Investment Bank 12 may initiate patent infringementactions and other enforcement proceedings against infringers who refuseto purchase licenses through the IP Trading Exchange 14. The IP Owner 10may choose to join any enforcement proceedings if desired or ifnecessary. Excess proceeds from infringement actions may be used by theInvestment Bank 12 to purchase IP license contracts from the IP TradingExchange 14, thereby increasing the price of the contracts and raisingthe value of the IP.

FIG. 2 shows typical day-to-day transactions on an IP trading exchangeaccording to one embodiment of the present invention.

As part of the first step of a typical day-to-day transaction of IPrights, the IP Contract Owner 20 of at least one IP license contractlists the contract and an asking or specified price on the IP TradingExchange 14. In situations where multiple contracts are owned, the IPContract Owner 20 may list multiple if not all of the license contractson the exchange. The IP Contract Owner 20 may perform the listing itselfor it may retain an Exchange Member 22 to perform the listing. The IPContract Owner 20 may be an investor or speculator who is re-selling thelicense contract for a higher price. Alternatively, the IP ContractOwner 20 may be a licensee who no longer needs the license, as describedbelow, or is selling excess license contracts.

Through the IP Trading Exchange 14, buyers determine whether or notdemand is sufficient to buy the license contract for the IP ContractOwner's specified price as listed on the exchange. If buyers areunwilling to pay the specified price, then the IP Contract Owner 20retains the license contract until such time when the price becomes moreattractive in the market. Alternatively, the IP Contract Owner 20 maylower the asking price to attract a buyer, which may be necessary tosell the license contract if expiration is imminent.

If a Buyer 24 is willing to pay the specified price, then the sale movesforward towards closing. Typically, an Exchange Member 22 purchases thelicense contract on behalf of the Buyer 24 at the specified price, andthe IP Trading Exchange 14 clears the transaction. In most anysituation, the IP Trading Exchange 14 monitors any disclosures andguarantees and clears the transaction.

When the Buyer 24 is an investor or speculator, the Buyer 24 may holdthe license contract until such time that the price becomes attractivefor the Buyer 24 to sell the contract. If expiration is imminent, theBuyer 24 may be forced to sell the license contract, perhaps even at adiscounted price.

When the Buyer 24 is a licensee, the Buyer 24 may hold the contractbeyond expiry and take delivery of the actual license. For instance, alicensee may require the actual license in order to practice the IP orlegitimize current operations that may be infringing. Typically, theactual license is delivered by the specialist holding the license.

Where delivery of the actual license has occurred, the holder of thelicense may only re-list the license upon an audit of current operationsindicating that the IP is no longer being practiced or is within levelsconsidered acceptable by the license. Further, if future operationsrequire a license and the licensee has sold the license throughre-listing, then the licensee will need to acquire a new license fromthe IP Trading Exchange 14 in order to resume operations.

While contracts are listed on the IP Trading Exchange 14, the IPinvestment bank that initially listed the transaction or its agents mayencourage potential licensees to purchase licenses from the exchange.Conducting a licensing and/or marketing campaign often fosters interestin the licenses, which may generate activity in the market andultimately raise the exchange prices and IP value.

Depending on trading activity, it may be necessary to release additionallicense contracts. For instance, if license contracts trade for morethan a certain value for more than a specific number of continuoustrading days, a new release of licenses may be warranted. The initialoffering stipulates the conditions under which additional licenses maybe released. For example, the initial offering may stipulate that arelease often new licenses is warranted when trading of the existinglicenses exceeds $1,000,000 for more than a thirty-day trading period.The second offering of new licenses may stipulate the conditions underwhich yet another release of new licenses may be warranted. Additionallicenses are released in a manner similar to the initial releasedescribed above. The new licenses are then bought and sold as describedabove with respect to day-to-day transactions.

Additionally, the investment bank or its agents may take legal action torequire a potential licensee to purchase a license, such as wherepotential licensee may be infringing the IP and refuses to purchase alicense. The IP owner may join any enforcement proceedings if desired orif necessary. Excess funds generated from any resolution of legal actionmay be used to purchase licenses from the IP trading exchange, whichmitigates the high cost of litigation and, at the same time, increasesthe price of the contracts and value of the IP.

FIG. 3 shows certain steps during the lifecycle of another embodiment ofan unitized license contract of the present invention. As shown in FIG.3, a potential IP Owner 110 may execute a mutual non-disclosureagreement (mNDA) with the IP Trading Exchange 114 prior to making asubmission. An mNDA allows the IP Trading Exchange 114 to shareconfidential information relating to the intellectual property with oneor more Underwriters 140 that assist with the listing and underwritingprocess. The IP Owner 110 then submits a schedule of intellectualproperty to be listed on the IP Trading Exchange 114. The IP Owner 110also may submit one or more of the following: a checklist covering keyrepresentations and terms from any seller agreement or unitized licensecontract (including, for instance, field of use, geographicalrestrictions, whether research was federally funded, among others); anydue diligence checklist, including validity opinions and/or analysessuch as prior art searches, infringement analyses such as claim charts,encumbrances, and prior licensing experience; descriptions of thetechnology to the licensed, including expected commercial embodiments inwhich the technology could be used, and market analyses; any financialinformation relating to anticipated deals and/or licensing revenues; andany plans for future production of the licensed technology.

The IP Trading Exchange 114 evaluates the intellectual propertysubmission of the IP Owner 110 and determines whether to move forwardwith the due diligence and underwriting processes. If the IP TradingExchange 114 decides to move forward, then the IP Owner 110 enters intoa license contract 142 with the IP Trading Exchange 114 and/or membersof the IP Trading Exchange 114. At this point, information relating tothe intellectual property and the IP Owner 110 is stored in anelectronic data warehouse or database 144 that is maintained by or forthe IP Trading Exchange 114.

The IP Trading Exchange 114 may issue an offering memorandum 146pursuant to and consistent with Rule 144A of the Securities Act of 1933addressing one or more of the following: a schedule of the intellectualproperty rights to be listed and the products with which theintellectual property rights may be used pursuant to the licensecontract 142; a description of the technology or intellectual propertyrights to be listed; a description of the market for the listedtechnology or intellectual property rights; a comparison with otherknown competing technologies; any pre-existing encumbrances; projectionsby IP Owner 110 on production, if applicable; if an industry-acceptedstandard exists, any comparison and/or likelihood of adoption as astandard; any validity analyses, risk factors, and any fees; and IPTrading Exchange rules and disclosures, including underwritingdisclosures, IP Trading Exchange's right to enforce and settlementpolicies, buyer obligations to report licensing usage, IP Trading'Exchange's right to audit, and any restrictions or policies with respectto resale, sublicensing, and enforcement.

The IP Trading Exchange 114 may distribute the offering memorandum 146to one or more Underwriters 140, working alone or as part of asyndicate. The Underwriter 140 carries out the due diligence andunderwriting processes. Based on the evaluations of the intellectualproperty by the Underwriter 140, the Underwriter may chose to accept thelicense contracts and begin soliciting interest of potential Buyers 124.The Underwriter 140 may solicit commitments from one or more Buyers 124,which will assist the Underwriter in finning up the pricing of theinitial sale of the intellectual property license contracts. TheUnderwriter 140 may further commit with potential Buyers 124 on certainterms on volume and discounts relating to the initial sale. Informationrelating to these initial deals and buyer commitments may be stored inan electronic deal information database 148, which is maintained by orfor the Underwriter 140 and/or the IP Trading Exchange 114.

Upon completion of the underwriting process, the Underwriter 140 and IPTrading Exchange 114 firm up the deal and prepare for the initial sale.The IP Trading Exchange 114 may schedule a date on which the licensecontracts 142 will first trade and the initial price. On the date of theinitial sale, the IP Trading Exchange 114 and/or a clearinghouse, suchas the NASDAQ portal or Depository Trust Clearing Corporation (“DTCC”),will have the number of electronic certificates authorized for the firstissue on hand. The IP Trading Exchange 114 and/or the clearinghouse willdisseminate live or realtime license contract trading information, suchas the bid or offer and details relating to the last trade. TheUnderwriter 140 will sell through its volume commitment first, and thenthe IP Trading Exchange 114 pays a flat fee for each license contract142 that issues.

The initial sale may be structured to comply with either Rule 144A(“144A”) or Regulation D (“Reg. D”) of the Securities Act of 1933. TheUnderwriter 140 may set up a separate limited liability company 150 orother corporate vehicle to issue the initial sale of license contracts,and the license contracts may be issued under either 144A or Reg. D. Forinstance, the limited liability company 150 may issue a first set orsubscription of initial license contracts under 144A that may be offeredfor sale through the NASDAQ portal, the DTCC, or other clearinghouse. Atthe same time, the limited liability company 150 may issue a second setor subscription of initial license contracts under Reg. D that may beoffered for sale through an in-house trading platform, such as a tradingplatform operated by the IP Trading Exchange 114. Two alternativesecondary markets may exist for trading the license contracts, one under144A and the other under Reg. D.

After the secondary market develops, in which license contracts 142 areregularly traded with Buyers 124, the IP Trading Exchange 114 may engagein oversight, auditing, reporting, and/or enforcement functions. The IPTrading Exchange 114 may engage in oversight functions to be sure thatlicense contracts are properly traded pursuant to 144A, Reg. D., orother federal securities regulations and rules. The IP Trading Exchange114 also may engage in auditing functions to be sure that Buyers 124 areaccurately representing their licensing usage and are no exceeding thescope or quantity of the license contract. The IP Trading Exchange 114also may engage in reporting functions to provide the market withrealtime market prices and related data, or to announce the filing ofenforcement proceedings or litigation relating to the license contracts.The IP Trading Exchange 114 also may undertake enforcement functions andcarry out enforcement proceedings, including infringement litigation,when recalcitrant buyers refuse to purchase licenses or a sufficientnumber of licenses.

Many changes and modifications will occur to those skilled in the artupon studying this description. All such changes and modifications whichare within the spirit of the invention are intended to be includedwithin the scope of the claims.

1. A computerized intellectual property trading exchange forfacilitating the trading of intellectual property rights, saidcomputerized exchange comprising: a computerized storage deviceconfigured to store at least one unitized intellectual property licensecontract, said at least one unitized license contract relating tointellectual property rights or a pool of intellectual property rights,said at least one unitized license contract comprising the right toprovide licenses to practice said intellectual property or said pool ofintellectual property rights for a predetermined quantity of instances;a computer-accessible forum, said computer-accessible forum defining atleast one regulation of trading and at least one requirement of listingon said computerized exchange, said computer-accessible forum configuredto allow a plurality of participants to trade said at least one unitizedlicense contract, said plurality of participants comprising: at leastone seller, said at least one seller having said at least one unitizedlicense contract, said at least one seller desiring to sell said atleast one unitized license contract; at least one underwriter, said atleast one underwriter desiring to purchase said at least one unitizedlicense contract for resale through said computer-accessible forum; andat least one buyer, said at least one buyer desiring to obtain said atleast one unitized license contract through said computer-accessibleforum.
 2. The computerized intellectual property trading exchange ofclaim 1 wherein said at least one underwriter is committed to purchase apredetermined number of unitized license contracts.
 3. The computerizedintellectual property trading exchange of claim 1 wherein said at leastone underwriter is committed to resell a predetermined number ofunitized license contracts through said intellectual property tradingexchange.
 4. The computerized intellectual property trading exchange ofclaim 1 wherein said at least one regulation of trading complies withRule 144A of the Securities Act of
 1933. 5. The computerizedintellectual property trading exchange of claim 1 wherein said at leastone regulation of trading complies with Regulation D of the SecuritiesAct of
 1933. 6. The computerized intellectual property trading exchangeof claim 1 further comprising an electronic database operativelyconnected to said computerized intellectual property trading exchange,said electronic database configured to store information relating tosaid unitized license contract, including sales information.
 7. Thecomputerized intellectual property trading exchange of claim 6 furthercomprising a platform operatively connected to said computerizedintellectual property trading exchange and said electronic database,said platform having an internet connection and being configured tocommunicate information stored in said electronic database to said atleast one buyer via said interne connection.
 8. The computerizedintellectual property trading exchange of claim 1 wherein saidcomputer-accessible forum defines at least one requirement for saidintellectual property rights contained by said pool.
 9. The computerizedintellectual property trading exchange of claim 1 wherein said buyergains rights to each of said intellectual property rights Contained bysaid pool.
 10. The computerized intellectual property trading exchangeof claim 1 wherein said seller receives royalties from each of saidintellectual property rights contained by said pool.
 11. Thecomputerized intellectual property trading exchange of claim 1 whereinsaid royalties are based on a weighting formula relating to said pool ofintellectual property rights.
 12. A computer-implemented method fortrading at least one unitized license contract relating to intellectualproperty rights or a pool of intellectual property rights by at leastone seller to at least one buyer through a computer-accessibleintellectual property exchange, said method comprising the steps ofstoring in a computerized storage device information describing said atleast one seller having said at least one unitized license contractrelating to said intellectual property rights or said pool ofintellectual property rights; storing in a computerized storage deviceinformation describing at least one underwriter desiring to obtain saidat least one unitized license contract for resale on saidcomputer-accessible intellectual property exchange by storing in saidcomputerized storage device information describing licenses to practicesaid intellectual property or said pool of intellectual property for apredetermined quantity of instances; storing in said computerizedstorage device information describing said at least one buyer purchasingsaid at least one unitized license contract through saidcomputer-accessible intellectual property exchange; and processing in amicroprocessor the clearing of said purchase by said buyer of said atleast one unitized license contract.
 13. The method of claim 12 whereinsaid at least one underwriter commits to purchase a predetermined numberof unitized license contracts.
 14. The method of claim 12 wherein saidat least one underwriter commits to resell a predetermined number ofunitized license contracts through said intellectual property tradingexchange.
 15. The method of claim 14 wherein said at least oneunderwriter commits to resell pursuant to Rule 144A of the SecuritiesAct of
 1933. 16. The method of claim 14 wherein said at least oneunderwriter commits to resell pursuant to Regulation D of the SecuritiesAct of
 1933. 17. A computer-implemented method for trading at least oneunitized license contract relating to intellectual property rights or apool of intellectual property rights by at least one seller to at leastone buyer through a computer-accessible intellectual property exchange,said method comprising the steps of: storing in a computerized storagedevice information describing said at least one seller having saidintellectual property rights or said pool of intellectual propertyrights; storing in a computerized storage device information describingsaid at least one unitized license contract between said at least oneseller and said computer-accessible intellectual property exchange, saidat least one unitized license contract relating to said intellectualproperty rights or said pool of intellectual property rights; storing ina computerized storage device information describing at least oneunderwriter desiring to obtain said at least one unitized licensecontract for resale on said computer-accessible intellectual propertyexchange by storing in said computerized storage device informationdescribing licenses to practice said intellectual property or said poolof intellectual property for a predetermined quantity of instances;processing in a microprocessor a listing on said computer-accessibleintellectual property exchange of said at least one unitized licensecontract; storing in said computerized storage device informationdescribing said at least one buyer purchasing said at least one unitizedlicense contract through said computer-accessible intellectual propertyexchange; and processing in a microprocessor the clearing of saidpurchase by said buyer of said at least one unitized license contract.18. The method of claim 17 wherein said at least one underwriter commitsto purchase a predetermined number of unitized license contracts. 19.The method of claim 17 wherein said at least one underwriter commits toresell a predetermined number of unitized license contracts through saidintellectual property trading exchange.
 20. The method of claim 19wherein said at least one underwriter commits to resell pursuant to Rule144A of the Securities Act of
 1933. 21. The method of claim 19 whereinsaid at least one underwriter commits to resell pursuant to Regulation Dof the Securities Act of
 1933. 22. The method of claim 17 wherein saidpool of intellectual property rights is increased or decreased in numberbased on at least one requirement.
 23. The method of claim 17 whereinsaid step of clearing further comprises payment of royalties to saidbuyer.
 24. The method of claim 23 wherein said royalties are based on aweighting formula relating to said pool of intellectual property rights.